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Who’s Included? 

  • Actors
  • Art Director
  • Dancers
  • Directors
  • Musicians
  • Photographers
  • Producers
  • Recording Studios
  • Set Designers
  • Writers

There are a myriad of rules and regulations that are applied to those in the entertainment industry. The first decision is, are you an employee or an independent contractor.

To be classified as an independent contractor:

  • The worker must be hired on a project-by-project basis, although the worker may work on a number of projects for the same commercial production company
  • The worker cannot be trained by the commercial production company and
  • The commercial production company cannot pay guild or union benefit payments (i. e. to health plans or retirement plans) on behalf of the worker

Because many tax treaties contain a provision for pay to artists and athletes, a separate category is assigned these payments for withholding purposes. This category may include payments made for performances by public entertainers (such as theater, motion picture, radio, or television artists, or musicians), athletes, or other persons as defined by the applicable treaty article.

  • Note: As a general rule the tax treaty article dealing with artists and athletes must be applied before the articles on independent personal services and dependent personal services are applied to the income of the artists and the athletes.

As a general rule Form W-8ECI may not be used to exempt withholding on a payment for personal services provided by a foreign individual. In addition, special rules apply to artists and athletes who have formed partnerships or corporations as the beneficial owners of the income accruing to them.

The following expenses can be deductible if:

  • incurred for carrying on your trade or business
  • ordinary and necessary, and
  • paid or incurred during your tax year:
  • Business bad debit of an employee
  • Business liability insurance premiums
  • Damages paid for breach of employment contract
  • Depreciation on a computer or cell phone your employer requires you to use in your work
  • Dues to a chamber of commerce, if membership helps you do your job
  • Dues to professional societies
  • Education expenses
  • Home Office
  • Job Search expenses
  • Laboratory breakage fees
  • Legal fees related to your job
  • Licenses and regulatory fees
  • Malpractice insurance premiums
  • Medical examinations required by employer
  • Occupational taxes
  • Passport for business trip
  • Subscriptions to professional journals and trade magazines related to your work
  • Tools and Supplies used in your work
  • Travel, transportation, meals, entertainment, gifts and local lodging related to your work
  • Union dues and expenses
  • Work clothes and uniforms if required and not suitable for everyday use
  • Work related education

The following items are non deductible:

  • Adoption expenses (however some of these can be deducted personally)
  • Burial or funeral expenses
  • Campaign expenses (political)
  • Club Dues
  • Commuting Expenses (not travel)
  • Fees and licenses (car licenses, marriage licenses and do tags)
  • Fines and Penalties (parking tickets, speeding tickets, et cetera)
  • Health Spa Expenses
  • Illegal Bribes and kickbacks
  • Legal Expenses, Personal (child custody, civil, criminal, et cetera)
  • Lobbying Expenses
  • Lost or misplaced cash or property
  • Lunches with co-workers
  • Medical Expenses as business expenses
  • Political contributions
  • Stockholders meeting, expenses to attend
  • Tax exempt income, expenses of earning or collecting

We can provide (depending on your needs):

  • Accounting and outsourced financial management
  • Audits
  • Bookkeeping
  • IRS problem resolution
  • Payroll
  • QuickBooks Accounting Support & Training
  • Reviews & Compilations
  • Staff Training
  • Tax Services
  • Sales & Use Taxes
  • Temporary Living Expenses

We have years of experience in working in the entertainment field. Put our expertise to work for you by contacting us today.

Entertainment Accounting

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